We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Super Micro Computer, NVIDIA, Intel and AMD
Read MoreHide Full Article
For Immediate Release
Chicago, IL – July 30, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Super Micro Computer, Inc. (SMCI - Free Report) , NVIDIA Corp.'s (NVDA - Free Report) , Intel Corp. (INTC - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Is SMCI Stock the Next NVIDIA, and Is It Worth Buying?
Following a challenging second half of 2024, investors have expressed a positive outlook on Super Micro Computer, Inc., with its shares gaining 97% this year and outpacing NVIDIA Corp.'s gain of 31.6%. So, can Supermicro, a manufacturer of data center components, become the next NVIDIA, and is it a worthwhile investment? Let's explore –
Behind SMCI's Gains This Year and Growth Potential
Supermicro's shares surged 10% on Monday after Digi Power X announced a provisional patent for its ARMS 200 modular data center, with SMCI as its exclusive server supplier. The choice of Supermicro indicates that the company may be leveraging advanced, high-value technology.
A short-seller tarnished Supermicro's reputation last year, but the stock rebounded to finish the first half of 2025 with a 60.8% increase. This rebound occurred after the company's new auditor, BDO, reviewed the last three years of financial transactions and confirmed that Supermicro's financial statements are fair in all material respects. The company was cleared of all allegations of fraud.
Supermicro's shares gained further after the firm announced a $20 billion deal with Saudi Arabian data center operator DataVolt. This deal is part of the Trump administration's strategic partnerships with Saudi Arabia.
In the March quarter, Supermicro's revenue growth fell short of market expectations, possibly due to delays in shipments of NVIDIA's Blackwell chips. However, no delays are expected for the June quarter, which could boost Supermicro's revenues and positively influence its share price. Remember, most of the graphics processing units (GPUs) used in Supermicro's systems are NVIDIA chips.
Could SMCI Be the Next NVIDIA?
Supermicro's gains this year have sparked questions about whether it can replicate NVIDIA's future success. Supermicro's business, which involves integrating several third-party components, is much easier to commoditize compared to NVIDIA's operations. However, developers prefer NVIDIA's CUDA software and artificial intelligence (AI) GPUs over competitors like Intel Corp. and Advanced Micro Devices, Inc..
NVIDIA's products are distinctive and superior to those of its rivals, but some competitors also offer Supermicro's direct liquid cooling method. Additionally, NVIDIA controls over 80% of the AI GPU market, boosting its pricing power. In contrast, Supermicro has only an 8% share in the AI server market, making it premature to crown Supermicro as the next NVIDIA (read more: Is Rigetti the Next NVIDIA, and Should You Buy the Stock?).
Should You Buy SMCI Stock Now?
Despite recent gains, investors should remain cautious. Major technology vendors are providing intense competition to Supermicro, which is putting pressure on the company's margins. Supermicro's non-GAAP gross margin for the fiscal 2025 third quarter was 9.7%, down from 11.8% in the previous quarter and 15.5% in the same quarter last year.
Supermicro also has a debt-to-equity ratio of 38.1%, higher than the Computer- Storage Devices industry average of 32.5%, indicating greater financial risk and increased vulnerability to economic downturns. Nonetheless, the company's growth may be impacted by trade-related uncertainties.
Supermicro, currently, has a Zacks Rank #5 (Strong Sell), and the Zacks Consensus Estimate of $2.07 for SMCI's earnings per share (EPS) is down by 39.7% from a year ago.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Super Micro Computer, NVIDIA, Intel and AMD
For Immediate Release
Chicago, IL – July 30, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Super Micro Computer, Inc. (SMCI - Free Report) , NVIDIA Corp.'s (NVDA - Free Report) , Intel Corp. (INTC - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Is SMCI Stock the Next NVIDIA, and Is It Worth Buying?
Following a challenging second half of 2024, investors have expressed a positive outlook on Super Micro Computer, Inc., with its shares gaining 97% this year and outpacing NVIDIA Corp.'s gain of 31.6%. So, can Supermicro, a manufacturer of data center components, become the next NVIDIA, and is it a worthwhile investment? Let's explore –
Behind SMCI's Gains This Year and Growth Potential
Supermicro's shares surged 10% on Monday after Digi Power X announced a provisional patent for its ARMS 200 modular data center, with SMCI as its exclusive server supplier. The choice of Supermicro indicates that the company may be leveraging advanced, high-value technology.
A short-seller tarnished Supermicro's reputation last year, but the stock rebounded to finish the first half of 2025 with a 60.8% increase. This rebound occurred after the company's new auditor, BDO, reviewed the last three years of financial transactions and confirmed that Supermicro's financial statements are fair in all material respects. The company was cleared of all allegations of fraud.
Supermicro's shares gained further after the firm announced a $20 billion deal with Saudi Arabian data center operator DataVolt. This deal is part of the Trump administration's strategic partnerships with Saudi Arabia.
In the March quarter, Supermicro's revenue growth fell short of market expectations, possibly due to delays in shipments of NVIDIA's Blackwell chips. However, no delays are expected for the June quarter, which could boost Supermicro's revenues and positively influence its share price. Remember, most of the graphics processing units (GPUs) used in Supermicro's systems are NVIDIA chips.
Could SMCI Be the Next NVIDIA?
Supermicro's gains this year have sparked questions about whether it can replicate NVIDIA's future success. Supermicro's business, which involves integrating several third-party components, is much easier to commoditize compared to NVIDIA's operations. However, developers prefer NVIDIA's CUDA software and artificial intelligence (AI) GPUs over competitors like Intel Corp. and Advanced Micro Devices, Inc..
NVIDIA's products are distinctive and superior to those of its rivals, but some competitors also offer Supermicro's direct liquid cooling method. Additionally, NVIDIA controls over 80% of the AI GPU market, boosting its pricing power. In contrast, Supermicro has only an 8% share in the AI server market, making it premature to crown Supermicro as the next NVIDIA (read more: Is Rigetti the Next NVIDIA, and Should You Buy the Stock?).
Should You Buy SMCI Stock Now?
Despite recent gains, investors should remain cautious. Major technology vendors are providing intense competition to Supermicro, which is putting pressure on the company's margins. Supermicro's non-GAAP gross margin for the fiscal 2025 third quarter was 9.7%, down from 11.8% in the previous quarter and 15.5% in the same quarter last year.
Supermicro also has a debt-to-equity ratio of 38.1%, higher than the Computer- Storage Devices industry average of 32.5%, indicating greater financial risk and increased vulnerability to economic downturns. Nonetheless, the company's growth may be impacted by trade-related uncertainties.
Supermicro, currently, has a Zacks Rank #5 (Strong Sell), and the Zacks Consensus Estimate of $2.07 for SMCI's earnings per share (EPS) is down by 39.7% from a year ago.
You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.